馃攳
Impact of Building Permit Fees on New Housing Costs Debated - YouTube
Channel: unknown
[0]
we look at what makes home so much more
[1]
expensive in Minnesota the inescapable
[3]
reality is that the way we regulate
[5]
homes is incredibly inefficient often
[9]
redundant and always more expensive than
[11]
our neighboring markets so as we the
[15]
three dozen or so roadblocks that
[16]
industry leaders have identified we must
[18]
begin to work on them and pursue policy
[21]
changes with urgency
[23]
one of the most straightforward areas to
[25]
begin is building permitting statute
[28]
rule and agency guidance lay this out
[31]
simply and clearly building permits and
[33]
plan review are a fee-for-service that
[36]
must bear a rough proportionality to the
[38]
costs to provide the building code
[40]
oversight and review from permit to
[43]
permit from year to year there should be
[45]
no substantial surplus or deficit local
[50]
governments must must find an efficient
[51]
way to review plans and inspect projects
[53]
for safety and durability price those
[56]
services fairly and charge that price to
[59]
homeowners in the course of studying
[61]
housing costs and policies we found that
[63]
this simply is not the case in many
[65]
cities what we found was that in spite
[68]
of clear statutory direction that
[70]
permits be proportional that local
[72]
governments not accrue ongoing surpluses
[75]
that excess permits not be used for
[77]
general fund or special project purposes
[79]
many cities appear to do just that so
[82]
what does that mean for homeowners it
[85]
means that homes are more expensive
[86]
sometimes $3,000 more than they need to
[89]
be just for permitting costs all signs
[93]
are pointing to the two access permit
[97]
revenue being placed into city's general
[99]
fund and as mr. Siegel said earlier how
[101]
can we fix the other three dozen issues
[104]
facing the housing market if we can't
[105]
get this one right this morning for
[109]
those of you who are at the walkthrough
[110]
of the site in Woodbury we identified
[112]
close to a hundred thousand dollars of
[113]
potential cost savings just chatting
[115]
with the industry professionals this is
[117]
the easiest one and we have to start
[119]
somewhere and I think really permit fees
[121]
is a great perfect place to start these
[123]
numbers are coming from it is the city
[126]
of Lakeville for 2018 so if you just
[129]
take a look at Roman numeral three which
[131]
is building permit fees and expenses
[133]
is there right if you take a look at
[134]
that it looks like the city has
[136]
quote-unquote made money but if you look
[138]
at the other things that are happening
[139]
at development cities have
[141]
administrative expenses engineering
[143]
expenses planning zoning expenses if you
[146]
take that into consideration
[148]
including what we're collecting for that
[151]
now what you're gonna see is wait a
[154]
second
[154]
actually it looks about equal it
[156]
actually is in the negative a little bit
[158]
it's um if you add that up just for this
[161]
one year the city of Lakeville is in the
[163]
red by 300 a little over than three
[165]
hundred ninety thousand dollars so it's
[168]
not as simple as has been presented
[171]
again it depends on what the criticism
[173]
is if you want to isolate it if you're
[175]
concerned about whether or not cities
[177]
are using these funds in an
[179]
impermissible way I can show you that
[181]
that is not the case the average new
[184]
house in Lakeville is sold for roughly
[186]
four hundred fifteen thousand dollars
[188]
land price is something that's outside
[190]
the city's control account for about a
[192]
hundred a hundred thousand of that price
[195]
fees collected through the land
[197]
development and the building permit
[199]
process phase average seventeen thousand
[202]
per house this equates to four point one
[204]
percent of the sales price even if these
[208]
fees were magically waived and the
[210]
resulting savings were passed along to
[212]
the homeowner this price of these homes
[214]
would still be close to $400,000 of
[218]
course these fees pay for critical
[219]
services which can't magically be waived
[221]
so the question remains if these
[224]
services aren't paid for through fees
[226]
who pays for them and that answer is
[229]
simple existing property taxpayers
[231]
there's many things to blame for
[232]
affordable housing it's not City fees
[235]
it's not land prices it's not
[238]
availability for land it's all of these
[240]
forces that come together Building
[243]
Inspection pays to ensure the health
[246]
welfare and safety for our residents
[248]
water and sewer inspections and
[251]
development related infrastructure from
[254]
your perspective what do you think the
[256]
challenges are we should be addressing
[257]
do you think our building permit or
[258]
building codes are are too aggressive
[260]
the you know you're in this is equally
[264]
as the developers are and I haven't
[265]
heard anything from
[266]
from anybody in the city Arena and you
[269]
guys represent them so I'd like to know
[271]
is there a is there a crisis that we do
[274]
want to ensure that these are safe
[276]
well-built homes that are built in our
[278]
communities I don't think we disagree
[279]
there
Most Recent Videos:
You can go back to the homepage right here: Homepage